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A New Income Play

Technology stocks with dividends? Yes, but be wary.

By

Jonathan Burton

Updated Dec. 3, 2012 12:01 a.m. ET

Investing for income and investing in technology stocks aren't mutually exclusive anymore.

The fast-paced, high-stakes tech sector is now the biggest contributor of stodgy old dividends in the Standard & Poor's 500-stock index. While that is partly because tech is by far the largest sector in the benchmark, at 19% of the total stock-market value, cash-rich icons such as Apple Inc. and Cisco Systems Inc. recently initiated shareholder payouts. As such, a number of tech-oriented mutual funds and exchange-traded funds...